Man Group secures $1.3bn investment commitment in Japanese insurer tie-up

Meiji Yasuda Life Insurance announced plans to acquire a 5% stake in Man Group, committing $1.3bn over the next three years, as per Bloomberg. The stake, valued at around £179m ($239m), will be purchased through open-market trades, not new shares, and will be locked in for three years, with Meiji Yasuda’s ownership limited to 19.99%.

Following the announcement, Man Group shares surged by up to 4.9%. This partnership will grant Meiji Yasuda access to Man Group’s expertise in quantitative strategies, private markets, and artificial intelligence, along with advisory services from the Oxford-Man Institute. For Man Group, this deal bolsters the growth of its private credit platform and aims to attract institutional capital from global insurance clients.

The agreement comes after Man Group reported record assets under management of $270.9bn in the third quarter, driven by inflows into its hedge fund and long-only strategies, as well as strong investment performance. Its shares have risen 42% this year, resulting in a market capitalization of approximately £3.7bn. The deal also highlights the increasing interest of Japanese insurers in partnering with overseas asset managers as they seek to diversify their investment portfolios and discover new sources of returns.